Many organizations are organized in a silo manner. Sales has its own silo. Product development has ts own silo. So, it goes without saying that finance typically has its own silo. However, in many organizations its even more pronounced than that. While the other silos tend to frequent each other’s “domain”, as product development can work closely with sales in pitching a customer, finance can fall into the trap of being on an island.
We close the books, put our reporting packages together, stuff it in a bottle (e-mail), and send it on its way. We don’t know who gets the bottle, who bothers to open it, and who even bothers to read what is in the bottle. In these extreme circumstances, the finance/accounting function becomes nothing more than a compliance function. We’re spinning reports because we have to. After all Wall Street and the banks wouldn’t be at all thrilled if we stopped doing a balance sheet or P&L.
We are all human and we do make mistakes. Even big ones. So, how do we get off the island? Or, at the very least, quit being so darn isolated. Well, to further the analogy a bit more, you are just going to have to do some rowing at first. There’s no bridge off your island, so its going to take some old fashioned elbow grease to get moving. Then, after you do some rowing, you’re going to have the opportunity to start building some bridges.
Here’s three ways to be a bridge builder rather than a bottle tosser:
The Problem: Office supplies are 200% over budget
The Bottle Tosser: Either puts the variance in 20 point bold font in the reporting package or sends an e-mail to the entire senior management team exposing the gross misconduct going on.
The Bridge Builder: Starts by actually figuring out WHO orders the supplies. Then they try something novel. They go talk to them.
The Problem: Overtime is Through the Roof
The Bottle Tosser: Blames the shortfall in profit for the month on the gross ineptitude going on in the factory. Ends the analysis there. It’s clear, after all, what happened.
The Bridge Builder: Would have a conversation with the ops manager, who would explain that our biggest customer put in a rush order to satisfy a spike in demand. They even paid an expedite fee to help offset the overtime! Better yet, a true bridge builder would have already known this because they were out on the floor every day.
Revenue in Our Biggest Product Line has Plummetted 20% This Year
The Bottle Tosser: Experiences with the fancy palate of colors the latest version of Excel has and highlights the fact the business development group is completely off their rocker in the product line profitability report.
The Bridge Builder: Made sure they were included in the Sales & Operations Planning process and knew that there was a concerted effort to step away from this product as the division was making a move towards a more profitable market with a stronger product.
I think you can see a trend developing here. There are a couple of characteristics that separate the Bridge Builder from the Bottle Tosser. Those would be communication and involvement. To initiate either, you have to get off the island and row. It’s not easy, at first. Just like anything in life, building relationships takes an effort. However, it is one of those activities that build off themselves exponentially. The stronger you build those relationships, the better they work.
Pretty soon, the bridge gets built and you don’t need to row anymore. The information flows across the bridge easily and honestly.
Have you made the transition from being a Bottle Tosser to a Bridge Builder? How did you make the change?
